Category: Uncategorized

Initial Vehicle Quality Improves in India, Though Repeat Buyers Remain More Critical, JD Power Finds

2020-01-16

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SINGAPORE: 21 Jan. 2020 — Overall initial quality has improved year over year in India with new owners citing an average of 69 problems per 100 vehicles (PP100) in 2019 compared with 81 PP100 in 2018, according to the JD Power 2019 India Initial Quality Study^SM (IQS), released today.

Initial quality is measured by the number of problems experienced per 100 vehicles (PP100) during the first 2-6 months of ownership, with a lower score reflecting higher quality. Largest improvements amongst ranked segments have been reported in the compact and premium compact segments with a decline in reported problems of -17 PP100 in each segment, respectively. All other ranked segments in the study have either improved or remained unchanged since 2018.

The study finds that the 28% of owners who have replaced or bought an additional vehicle report a higher number of problems compared to first-time buyers. On average, repeat or replacement vehicle buyers have a 98 PP100 score compared with 57 PP100 among first-time buyers. Notably, repeat vehicle buyers report more problems related to issues with their models’ engine/transmission, exterior, interior and features/controls/displays than first-time buyers.

“It is very encouraging to see the industry improve on initial quality,” said Kaustav Roy, Director and Country Head, India at JD Power. “The concerted efforts among manufacturers to improve initial product quality is critical at a time when sales are under pressure, competition is fierce and customer expectations are ever rising.”

Following are key findings of the 2019 study:

• Engine/transmission category improves the most: The number of problems cited in this category have improved the most (15.6 PP100 in 2019 vs. 19.3 PP100). 
   
• Automatic transmissions experience more problems than manuals: With a growing number of automatic models entering the market, it is notable to see owners with automatic transmissions indicating, on average, more problems (84 PP100 vs. 67 PP100, respectively).
   
• Despite improved quality, top three problems remain the same: Despite an improvement in overall initial quality in 2019, the top three problem areas remain the same: excessive fuel consumption (5.4 PP100 in 2019 vs 7.2 PP100 in 2018); manual gears—difficult to get in gear/grind (2.6 PP100 vs 3.7 PP100 in 2018); and brakes are too noisy (2.0 PP100 vs. 3.1 PP100 in 2018).

Study Rankings

Hyundai Santro (54 PP100) ranks highest in the compact segment. In the premium compact segment, Hyundai Elite i20/Active ranks highest with 57 PP100. 

Honda Amaze (75 PP100) ranks highest in the entry midsize segment. Hyundai Verna (63 PP100) ranks highest in the midsize segment. 

Hyundai Venue (52 PP100) ranks highest in the compact SUV segment while Hyundai Creta (63 PP100) ranks highest in the SUV segment.

Maruti Suzuki Ertiga ranks highest in the MUV/MPV segment with 49 PP100.

The 2019 India Initial Quality Study (IQS) is based on responses from 6,051 new vehicle owners who purchased their vehicle from October 2018 through October 2019. The study includes 66 models from 13 makes. 

The study measures problems experienced by new vehicle owners during the first two to six months of ownership and examines more than 200 problem symptoms in eight problem categories (listed in order of frequency of reported problems): engine/transmission; heating, ventilation and cooling (HVAC); driving experience; vehicle exterior; features, controls and displays; vehicle interior; audio, entertainment and navigation (AEN); and seats. 

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

Media Relations Contacts
Gordon Shields; JD Power; Singapore; 65-3165-0100; [email protected]
Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

 

Wireless Network Quality Problems Most Prevalent in Urban and Rural Regions, JD Power Finds

2020-01-21

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TROY, Mich.: 23 Jan. 2020 — Think you should always have great wireless service when you’re in a big city? Think again. Residents of urban areas experienced the highest incidence of overall network quality problems in the JD Power 2020 U.S. Wireless Network Quality Performance Study^SM—Volume 1, released today. At the other end of the spectrum, residents of rural areas experienced the second-highest volume of network quality problems. The phenomenon sets the stage for the regional challenges ahead as carriers roll out their 5G offerings.

“The network quality problems wireless customers are experiencing in urban, suburban and rural areas each require different solutions, given the unique nature of their environments,” said Ian Greenblatt, managing director at JD Power. “Managing customer expectations for speed and reliability will be critical across these different tiers because the user perception of speed on a high-band frequency vs. a low-band frequency will be very different, driving dissimilar experiences. The continued rollout of multitier 5G strategies, delivering shorter-range, high-band frequencies in densely populated urban settings and longer-range, low-band frequencies in rural settings has the power to address these challenges, but only if providers properly set those expectations against the reality of the real-world speeds of 5G.”

Study Results

Verizon Wireless ranks highest in all six regions covered in the study, achieving the lowest network quality problems per 100 connections (PP100) in call quality, messaging quality and data quality in each region. 

The 2020 U.S. Wireless Network Quality Performance Study—Volume 1 is based on responses from 33,750 wireless customers. Carrier performance is examined in six regions: Mid-Atlantic, North Central, Northeast, Southeast, Southwest and West. In addition to evaluating the network quality experienced by customers with wireless phones, the study also measures the network performance of tablets and mobile broadband devices. The study was fielded from July through December 2019.

For more information about the U.S. Wireless Network Quality Performance Study, visit https://www.jdpower.com/business/resource/jd-power-wireless-network-quality-performance-study. 

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; Huntington, NY.; 631-584-2200; [email protected] 
 

 

Most Consumers Still Say ‘Thanks, but No Thanks’ to Future Self-Driving and Electric Vehicle Offerings

2020-01-22

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TROY, Mich.: 23 Jan. 2020 — Consumers continue to lack confidence in the future mobility technologies that automakers are eager to bring to market. According to the JD Power 2019 Q4 Mobility Confidence Index Study fueled by SurveyMonkey Audience,^SM released today, the Mobility Confidence Index remains 36 (on a 100-point scale) for self-driving vehicles and 55 for battery-electric vehicles for a third consecutive quarter.

“Consumer opinion doesn’t change overnight, especially when it comes to new mobility technologies, but the more consumers are exposed to these technologies, the more the needle might gradually move towards acceptance,” said Kristin Kolodge, executive director of driver interaction & human machine interface research at JD Power. “Right now, they simply don’t know enough to fully put their trust in these systems.”

The quarterly study, which will include feedback from Canadian respondents in 2020, is the pulse of market readiness and acceptance for self-driving and battery-electric vehicles, as seen through the eyes of consumers and industry experts. Sentiment is segmented into three categories: low (0-40), neutral (41-60) and positive (61-100). JD Power is joined by global survey software company SurveyMonkey to conduct the study in which more than 6,000 consumers and industry experts were polled about self-driving vehicles and more than 5,000 were polled about battery-electric vehicles. 

Following are key findings about self-driving vehicles:

• Mobility Confidence Index remains low for self-driving vehicles: Consumers continue to have a low level of confidence about the future of self-driving vehicles, which is stalled at an overall score of 36 for the third quarter in a row. Additionally, all attributes analyzed in the study largely remain flat, with comfort riding in a self-driving vehicle and comfort with self-driving public transit the lowest-scoring.
   
• The jury is out on potential traffic safety improvements: Consumers are split about whether traffic safety will be improved with self-driving vehicle technology. The majority (59%) of those who express having “a great deal” of knowledge about self-driving technology believe traffic safety will be better, compared to 55% with “no knowledge at all” who believe it will be worse. One consumer said, “As I see more people engrossed in using their cell phones while driving, I think that self-driving vehicles would actually make driving safer as a whole.” One concern was “[A vehicle’s] computer can’t be programmed for every possible thing that might be encountered and appropriate action taken.” Another noted, “I would like to see a lot more evidence of SAFETY!”
   
• Knowledge about self-driving vehicles affects purchase consideration: Only 11% of survey respondents express they are “extremely likely” to purchase or lease a self-driving vehicle. The results vary widely based on respondents’ self-reported knowledge level on the subject. Of those stating they know “a great deal” about self-driving vehicles, 32% are “extremely likely” to purchase or lease one; of those stating they know “nothing at all”, the likelihood drops to 3%.

“Knowledge is power,” Kolodge said. “There is an association between self-reported knowledge level of self-driving vehicles and likelihood to purchase. Undoubtedly, it is critical for consumers to gain experience even through lower levels of automation.”

Following are key findings about battery-electric vehicles:

• Mobility Confidence Index remains neutral for battery-electric vehicles: With an overall score of 55 for a third straight quarter, confidence about the future of battery-electric vehicles remains neutral. Attributes scoring lowest include likelihood of purchasing an electric vehicle and reliability of electric compared to gas-powered vehicles.
   
• Prospects for battery-electric vehicles improving, say experts: According to industry experts, prospects for battery-electric vehicles have improved over the past three months. New product announcements and battery development are positive drivers for this improvement. “[There are] more entries into the market that are better and are actually vehicles customers want to drive—from brands they trust,” said one expert. Infrastructure and cost to produce have risen to the top challenges for battery-electric vehicles over the past three months.

“For automakers it is critical that the coming wave of new products stimulates new consumer demand,” Kolodge said. “Otherwise, too many products will continue to chase too few customers, which will be financially disastrous for many automakers.”

“This data should be alarming to automakers, who have work to do in informing and persuading consumers to accept self-driving vehicles,” says Jon Cohen, chief research officer at SurveyMonkey. “Only 32% of consumers say they know a great deal or a fair amount about self-driving vehicles. And only 18% say they are extremely or very comfortable riding in a self-driving vehicle. The same percentage say they are extremely or very comfortable being on the road with others using self-driving vehicles.”

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

SurveyMonkey (NASDAQ: SVMK) is a leading global survey software company on a mission to power the curious. The company’s People Powered Data platform empowers over 17 million active users to measure and understand feedback from employees, customers, website and app users, and the market. SurveyMonkey’s products, enterprise solutions and integrations enable 335,000+ organizations to solve daily challenges, from delivering better customer experiences to increasing employee retention. With SurveyMonkey, organizations around the world can transform feedback into business intelligence that drives growth and innovation.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]
Sandra Gharib, SurveyMonkey; [email protected] 

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

 

JD Power Launches Inaugural Digital Experience Intelligence Benchmark of More Than 750 Brands

2020-01-28

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TROY, Mich.: 29 Jan. 2020 — With an estimated 49% of total U.S. retail sales today influenced by digital touchpoints¹, customer experience is dictated by variables like website content, ease-of-use, page speed and search engine optimization. To get a better sense of which brands are getting the digital formula just right and to establish best practices for digital properties across a wide range of industries, JD Power is launching the new Digital Intelligence Benchmark powered by Centric Digital. 

“JD Power’s syndicated studies reflect a truth of the modern consumer—digital interactions have an increasingly significant effect on overall customer experience,” said Keith Webster, president of global business intelligence at JD Power. “For example, in a study of leading insurance companies, those that had higher digital intelligence had a higher voice of the customer score as measured by JD Power.”

When brands get their digital strategy and execution right, customer satisfaction, retention and advocacy all benefit, but when they miss the mark, the legacy brand can suffer irreparable damage. In a world where customer expectations from best-in-class experiences drive expectations for every digital interaction, this cross-industry benchmark provides the necessary perspective on trends and best practices to inform digital strategies. 

The Digital Intelligence Benchmark (DIB) is complementary to JD Power’s existing Digital Studies by providing a view into performance of public-facing marketing websites against digital best practices. DIB scores are based on 250+ digital best practices, with 90% of the score weighted to the 25 that customers say are most important (based on JD Power Voice of the Customer digital studies). The quintile ranking segments national vs. regional brands. 

JD Power’s Digital Intelligence Benchmark is powered by Centric Digital as part of a collaboration the two firms announced in April 2019 to address the growing digital experience and transformation challenges businesses face. DIB will expand to other digital assets beyond public-facing websites in 2020. 

“Until now, evaluating best-in-class digital experiences has been a highly subjective exercise that has lacked standardization,” said Jason Albanese, CEO of Centric Digital. “By teaming up with JD Power we are providing proprietary competitive intelligence and digital experience roadmaps to help businesses exceed customer expectations.”

For more information about the Digital Intelligence Benchmark product and methodology, visit
https://www.jdpower.com/business/digital-intelligence-benchmark.  

To see the complete list of companies in the Digital Intelligence Benchmark, click http://www.jdpower.com/pr-id/2020006.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

Centric Digital’s intelligence platform, DIMENSIONS™, measures capabilities across an enterprise’s core digital footprint—web, mobile, social, etc.—and compares them to industry standards and market leaders. Insights from Centric Digital IQ data powers partner solutions, informs investors and guides C-suite executives through frontline managers to optimize business performance. Over 15,000 brands worldwide and across industries are tracked including the S&P 500. To learn more or schedule a demo, please visit centricdigital.com.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; Huntington Station, N.Y.; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

 

2020 Annual Retail Sales Expected to Fall to 13.48 Million; January to See Modest Declines Despite Record Incentives

2020-01-29

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The Retail Sales Forecast
New-vehicle retail sales in January are expected to be down from a year ago, according to a forecast developed jointly by JD Power and LMC Automotive. Retail sales are projected to reach 854,900 units, a -0.4% decrease compared with January 2019.

JD Power and LMC Automotive are forecasting full year 2020 retail sales to reach 13.48 million units, a decline of 205,000 units from 2019.

The Total Sales Forecast
Total sales in January are projected to reach 1,124,700 units, a 0.6% decrease compared with January 2019. The seasonally adjusted annualized rate (SAAR) for total sales is expected to be 16.7 million units, flat from a year ago.

JD Power and LMC Automotive are forecasting full year 2020 total sales to reach 16.78 million units, a decline of 212,000 units from 2019.

The Takeaway
Thomas King, President of the Data and Analytics Division at JD Power:
“In a retail market that is expected to decline for the fifth consecutive year, it’s important to remember that January is typically the lowest sales month of the year.” On average, January accounts for only 6.3% of annual sales and is more than 30% lower than December 2019 sales.

“The larger concern remains the record level incentive spending supporting the underlying volume,” King added. “This marks the first time ever that we will start the year with spending above $4,000.” Incentive spending is on pace to reach $4,136 in January, an increase of $258 from last year. Spending on cars is expected to be up $328 to $3,952, while spending on trucks/SUVs is up $217 to $4,200. 

Cars also continue to see reduced demand in the marketplace and are on pace to account for only 27% of retail sales in January, a decline of 3.7 percentage points from last year. This would be the first time that car retail share of industry started the year below 30%.

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Transaction prices remain a bright spot for the industry and are on pace to rise by 2.6% to $33,982, the highest level ever for the month of January. Prices will set records for both cars (+$126 to $27,363) and trucks/SUVs (+$766 to $36,316).

Record prices means that consumers are expected to spend $29.1 billion on new vehicles in January. This is up $600 million from last year and is a record to start the year.

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Looking ahead to next month, February has a once-in-a-generation sales calendar quirk that represents a unique opportunity for manufacturers to capitalize. Due to the leap year and industry sales reporting practice, the February sales month contains five weekends for the first time since 1992. “Typically, February is the second-lowest volume month of the year,” King said, “but the calendar will pull an extra selling weekend into the month. The result could be industry retail sales exceeding one million units in the month for the first time since 2017.”

Sales & SAAR Comparison
JD Power and LMC Automotive U.S. Sales and SAAR Comparisons

The Details

• The average new-vehicle retail transaction price in January is expected to reach $33,982. The previous high for the month of January, $33,118, was set in January 2019.
   
• Average incentive spending per unit in January is expected to reach $4,136, up from $3,878 last year. The previous record —$3,955—was set in January 2018.
   
• Incentive spending on cars is expected to be up $328 to $3,952, while spending on trucks/SUVs is up $217 to $4,200.
   
• Consumers are on pace to spend $29.1 billion on new vehicles in January, up $600 million from January 2019.
   
• Truck/SUVs account for 72.5% of new-vehicle retail sales through Jan. 26, the highest level ever for the month of January.
   
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 71 days (through Jan. 19). This is up one day from a year ago.
   
• Fleet sales are expected to total 269,800 units, down 1.2% from January 2019. Fleet volume is expected to account for 24% of total light-vehicle sales, flat from a year ago.

Outlook for the Year

Jeff Schuster, President, Americas Operations and Global Vehicle Forecasts, LMC Automotive:
“This year is starting with less trade uncertainty in the auto sector than in 2019 and, while economic growth is expected to hover just under 2%, there could be some upside with trade being less of a drag and it being an election year. Affordability remains a major concern for the U.S. auto market as transaction prices have continued to rise and used vehicles are a viable substitute for some consumers, especially entry-level buyers. At the same time, the battery electric (BEV) market is expected to double the number of entries in 2020 from 16 to 33, but BEV volume is expected to grow by only 50,000 units. So, the average per model will fall from 15,200 to 8,750.”

The 2020 outlook for total light-vehicles sales is 16.8 million units, a decline of 1.2% from 2019. Retail light-vehicle sales in 2020 are expected to decline by 1.5% to 13.5 million units as fleet share of total light vehicles is expected to increase slightly to 19.7% from 19.5% in 2019.

A Special Look Back at 2019

In January 2019, JD Power and LMC Automotive forecasted U.S. light-vehicle sales for the year to be 16,983,623. Actual total sales came in 5,984 units higher, a difference of .04%. That’s hitting the bullseye. JD Power analytical accuracy for the past seven years is impressive, with the average annual forecast during that time period coming within 1% of the actual amount. Not so impressive, though, is that no one from the JD Power Data & Analytics team won the 2019 JD Power Fantasy Football League. The humble crew is not deterred, knowing that their expertise lies in analyzing vehicle sales and the data points around those sales. They have forecasted 2020 U.S. light-vehicle sales to be 16,777,967.

Media Relations Contacts
Geno Effler; JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
Emmie Littlejohn; LMC Automotive; Troy, Mich.; 248-817-2100; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info
About LMC Automotive www.lmc-auto.com
 

 

Wireless Carrier Investments in Self-Service Tools Drive Satisfaction and Revenue in Customer Care, JD Power Finds

2020-02-04

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Troy, Mich.: 6 Feb. 2020 — The best wireless customer care experiences are increasingly becoming those that involve only one human being, according to the JD Power 2020 U.S. Wireless Customer Care Full-Service Performance Study^SM—Volume 1 and the JD Power 2020 U.S. Wireless Customer Care Non-Contract Performance Study^SM—Volume 1.

The last several years of investment by wireless carriers in their unassisted customer care channels, including technologies such as mobile apps, websites and online videos, have yielded improvements in unassisted care customer satisfaction. Meanwhile, the satisfaction gap between assisted and unassisted care is narrowing, accompanied by an increase in usage among younger generations in unassisted care channels.

“It’s become crystal clear in our data that wireless customers—particularly younger customers under age 35—appreciate being able to help themselves whenever they want, without having to wait for a customer service representative or talk to someone on the phone,” said Ian Greenblatt, managing director at JD Power. “This is foundational for network operators who can receive upwards of 100 million customer service calls per year. With an average cost per call of about $9 to $12, the ability to migrate customers to self-service channels without compromising customer satisfaction is a critical advantage for those who get the formula right.”

Study Results

For full-service carriers, T-Mobile ranks highest with a score of 848. Verizon Wireless (817) ranks second and AT&T (793) ranks third. The full-service segment average is 805.

For non-contract full-service carriers, Metro by T-Mobile ranks highest with a score of 821. Boost Mobile and Cricket rank second in a tie with a score of 815. The segment average is 809.

For non-contract value carriers, Consumer Cellular ranks highest with a score of 888. Straight Talk Wireless (771) ranks second and TracFone (751) ranks third. The segment average is 795.

The 2020 U.S. Wireless Customer Care Full-Service Performance Study—Volume 1 and the 2020 U.S. Wireless Customer Care Non-Contract Performance Study—Volume 1 are based on responses from 12,974 customers who contacted their carrier’s customer care department within the past three months.  The studies evaluate customer care experiences across 12 different customer care channels: phone customer service reps; in-store contact; online chat; email; social media post; carrier app question post; automated telephone systems; website search; social media search; user forum; video from carrier; and carrier app search.

The studies were fielded from July through December 2019.

For more information about the U.S. Wireless Customer Care Full-Service Performance Study and the U.S. Wireless Customer Care Non-Contract Performance Study, visit 
https://www.jdpower.com/business/resource/us-wireless-customer-care-performance-study 

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; Huntington, NY.; 631-584-2200; [email protected] 
 

 

Big Banks Raising Customer Satisfaction with Effective Digital Advice Tools, JD Power Finds

2020-02-05

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TROY, Mich.: 6 Feb. 2020 — With fewer bank customers than ever before visiting physical branches, retail banks have become increasingly adept at connecting with their customers by offering financial advice digitally. According to the JD Power 2020 U.S. Retail Banking Advice Satisfaction Study,^SM released today, customer satisfaction with advice and guidance received through digital channels has increased significantly, with the largest banks leading the charge.

The study, now in its third year, measures retail banking customer satisfaction with the advice and guidance provided by six big banks and 17 regional banks in the United States.

“Providing targeted, helpful financial advice has always been a key driver of improved customer satisfaction for retail banks,” said Paul McAdam, senior director of banking intelligence at JD Power, “but until recently, the ability to achieve that connection with customers outside of the bank branch via digital channels has been inconsistent, with low rates of customer adoption. Based on this year’s study results, it is safe to say we’ve reached the tipping point, where banks that get their digital formulas right are seeing strong gains in both adoption of and satisfaction with advice and guidance delivered via digital channels. Within the next year, digital will surpass the branch as the most commonly used retail banking customer advice channel.”

Following are key findings of the 2020 study:

• Customer satisfaction with retail bank advice rises, driven by big banks’ digital tools: Overall customer satisfaction with the advice provided by a primary retail bank increases by 14 points to 833 (on a 1,000-point scale) in 2020 from a year ago. The increase is driven by the big bank segment, which sees a 16-point gain, compared with an 11-point gain in the regional bank segment. Big banks not only lead in satisfaction with digitally delivered advice (e.g., website, mobile app and email), but also with face-to-face advice.
   
• Digital advice closes gap with in-branch experience: Overall, while 36% of retail bank customers receive advice and guidance through digital channels, that number jumps to 51% among customers in Gen Z¹. Overall customer satisfaction with digital advice is up 21 points, while satisfaction with in-person advice is up just two points.
   
• Interactive tools drive personalization, engagement and behavior: Customers who receive advice via their bank’s interactive digital tools within the website or mobile app indicate the advice is highly personalized and meets their needs. These customers are also more likely to have interactions with their bank involving eliminating or paying down debt; managing budgeting and spending; managing investments; and preparing for retirement. Overall, interactive financial tools amplify digital advice satisfaction by 112 points.
   
• Digital account opening ramps up: Nearly one-third (31%) of new account openings are executed through a bank website or mobile app, up from 22% in 2019. Meanwhile, the number of new account openings at branches has declined year over year by 10 percentage points, and now comprises just 55% of all new account openings. As a result, customer satisfaction with new account openings increases by 13 points this year.

“Great financial advice is a key differentiator for retail banks at a critical moment in time when, according to our research, 41% of U.S. bank customers feel unsatisfied with their current financial condition and 39% are not confident they are doing everything they can to meet their long-term goals,” said Bob Neuhaus, vice president of financial services intelligence at JD Power. “The fact that banks are finding ways to resonate with customers as they move further along the continuum toward digital as their primary banking channel is encouraging, but banks are going to need to keep innovating to stay competitive in this fast-moving environment.”

Study Rankings

Citibank ranks highest in customer satisfaction with retail banking advice with a score of 852. Bank of America ranks second with a score of 851 and BB&T and Chase rank third in a tie, each with a score of 840.

The 2020 U.S. Retail Banking Advice Satisfaction Study includes responses of 3,883 retail bank customers in the United States who received any advice/guidance from their primary bank regarding relevant products and services or other financial needs in the past 12 months. The study was fielded in October-November 2019.

For more information about the U.S. Retail Banking Advice Satisfaction Study, visit
https://www.jdpower.com/business/resource/us-banking-advice-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; Huntington, NY.; 631-584-2200; [email protected]

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¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.

 

Retail Bank Customers in Canada Beginning to Embrace Digital Advice Tools, JD Power Finds

2020-02-05

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TORONTO: 6 Feb. 2020 — A steadily growing number of retail bank customers in Canada are embracing financial advice provided by their bank through digital channels. According to the JD Power 2020 Canada Retail Banking Advice Satisfaction Study,^SM customer satisfaction with advice and guidance received through digital channels has increased year over year, while satisfaction with advice received in-person remains flat.

The study, now in its third year, measures retail banking customer satisfaction with the advice and guidance of five major Canadian banks.

“Advice and guidance delivered via digital channels is resonating with bank customers, fostering stronger engagement and higher levels of customer satisfaction with bank brands that get their digital formulas right,” said Paul McAdam, senior director of banking intelligence at JD Power. “At a time when the number of new account openings occurring in physical branches is declining and digital account openings are growing, it is critical that retail banks continue to find ways to nurture their digital relationships and build customer loyalty through the digital channel.”

Following are key findings of the 2020 study:

• Customer satisfaction with digital channel advice improves: Overall customer satisfaction with the advice and guidance provided by a primary retail bank has been flat for the past three years. Satisfaction with digitally delivered advice (e.g., website, mobile app and email) improves 10 points to 783 (on a 1,000-point scale) this year vs. 2019.
   
• Mobile apps and e-mail show sharpest growth: The portion of retail bank customers receiving retail banking advice digitally has increased four percentage points this year to 25%, driven by increases in mobile app and email-based advice.
   
• Adoption highest among younger customers: Younger generations are the most likely to receive advice digitally, with 35% of Gen Z¹ customers receiving advice this way.
   
• Digital account opening gains traction: While 65% of new account openings at Canadian retail banks are still occurring in a branch, the volume of branch-based account openings has declined by seven percentage points this year. Meanwhile, the volume of new digital account openings has increased by three percentage points this year to 21% of all new account openings.

Study Rankings

BMO Bank of Montreal ranks highest in customer satisfaction with retail banking advice with a score of 806. RBC Royal Bank ranks second with a score of 796 and CIBC ranks third with a score of 795.

The 2020 Canada Retail Banking Advice Satisfaction Study includes responses from 1,685 retail bank customers in Canada who received any advice/guidance from their primary bank regarding relevant products and services or other financial needs in the past 12 months. The study was fielded in October-November 2019.

For more information about the Canada Retail Banking Advice Satisfaction Study, visit
https://www.jdpower.com/business/resource/canada-banking-advice-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; Huntington, NY.; 631-584-2200; [email protected]

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NOTE: One chart follows.

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¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.

 

New-Car Buyers In India Call Out For More Relevant and Easy-To-Use In-Car Technology, JD Power Finds

2020-02-10

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SINGAPORE: 11 Feb. 2020 — Declines across all 10 categories within the JD Power 2019 India Automotive Performance, Execution and Layout (APEAL) Study,^SM released today, emphasises the need for automotive manufacturers to improve the attractiveness of their model lineups.

The most notable declines in overall satisfaction this year come from three key category areas: Audio/ Communication/ Entertainment/ Navigation (ACEN); fuel economy; and storage and space. The overall satisfaction index drops to 841 in 2019 from 850 in 2018.

The study finds that customers are rating the usefulness of the in-vehicle applications lower this year, especially the navigation system. Satisfaction has also declined around key areas of the audio system.

“Car owners expect an easy to use in-car infotainment system, much like their smartphones,” said Kaustav Roy, director and country head, India at JD Power. “Interfaces that require users to make efforts in learning to operate the system typically scores lower. Additionally, in the interface design phase, manufactures need to validate that the design is intuitive and will be easy to operate in the real world.”

Following are some of the key findings of the 2019 study:

• Midsize segment declines the most in 2019: Satisfaction among new buyers of midsize segments vehicles drop by 33 index points year-on-year to 830 in 2019, from 863 in 2018.
   
• Branded audio systems scored higher: The difference in satisfaction between the those who recall having branded audio systems groups is higher than the satisfaction of those who do not (846 vs. 832). In total, 69% of car buyers recalled their audio system to be branded.
   
• More new buyers are upgrading: Nearly half (49%) of new buyers have upgraded their vehicle in terms of vehicle size and segment, compared to 45% in 2018.

Study Rankings

• Tata Tiago ranks highest in the compact segment with a score of 849.
   
• Hyundai Elite i20/ Active ranks highest in the premium compact segment with a score of 857.
   
• Honda Amaze ranks highest in the entry midsize segment with a score of 847.
   
• Hyundai Verna ranks highest in the midsize segment with a score of 848.
   
• Toyota Innova Crysta ranks highest in the MUV/ MPV segment with a score of 867.
   
• Mahindra XUV 300 ranks highest in the compact SUV segment with a score of 886.
   
• Mahindra Scorpio ranks highest in the SUV segment with a score of 890.

The 2019 India Automotive Performance, Execution and Layout (APEAL) Study^SM is based on responses from 6,051 new-vehicle owners who purchased their vehicle from October 2018 through October 2019. The study includes 66 models from 13 makes.

The study measures what factors satisfy owners in India regarding their new vehicle’s performance and design during the first two to six months of ownership. The study examines 79 attributes in 10 vehicle categories: exterior; interior; storage and space; audio/ communication/ entertainment/ navigation; seats; heating, ventilation and air conditioning; driving dynamics; engine/ transmission; visibility and driving safety; and fuel economy.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

Media Relations Contacts

Gordon Shields; JD Power; Singapore; 65-3165-0119; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

 

More Owners Loving Dependability of Their Three-Year-Old Vehicles, JD Power Finds

2020-02-11

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TROY, Mich.: 12 Feb. 2020 — Love is in the air. Maybe it’s the proximity to Valentine’s Day or maybe it’s that owners see dependability of their three-year-old vehicles improving in 2020. According to the JD Power 2020 U.S. Vehicle Dependability Study^SM (VDS), released today, overall vehicle dependability improves 1.5% from 2019.

“Despite the increased adoption of complex vehicle technology, dependability continues to improve,” said Dave Sargent, vice president of global automotive at JD Power. “There’s no question that three-year-old vehicles today are better built and more dependable than same-age vehicles were in previous years. However, the rapid introduction of technology is putting increased pressure on dependability, so it would not be surprising to see problem levels plateau, or even increase, over the next few years.”

The study, now in its 31^st year, measures the number of problems per 100 vehicles (PP100) experienced during the past 12 months by original owners of their three-year-old vehicles. The 2020 study measures problems in model-year 2017 vehicles. A lower score reflects higher quality, and the study covers 177 specific problems grouped into eight major vehicle categories.

Following are key findings of the 2020 study:

• Vehicle dependability improves—but at a slower rate: The industry average in 2020 is 134 PP100, which is an improvement of just 2 PP100 from 2019. (However, in 2019, there was an improvement of 6 PP100 from 2018.) Despite the slowing rate of improvement, 2020 marks automakers’ best performance in the history of the study.
   
• Dependability gains driven by crossovers and SUVs: Crossovers and SUVs still have slightly more problems than cars, but the gap is narrowing. On average, owners of crossovers/SUVs experience 134 PP100, compared with 127 PP100 by car owners. This 7 PP100 gap has narrowed considerably from 2019. With crossovers/SUVs now accounting for more than 50% of new vehicle sales annually, it is critical that automakers achieve the same level of quality and dependability as for cars.
   
• In-vehicle technology shows greatest improvement: Audio/Communication/Entertainment/ Navigation (ACEN) is the most improved category (by 2.3 PP100), but still accounts for more problems than any other category in the study. Owners continue to cite problems with voice recognition, Bluetooth^® connectivity and navigation systems. “Many owners complain about these systems early in the ownership experience and, three years later, they’re still frustrated with them,” Sargent said. “We’re seeing improvement, but automakers still have a long way to go to before they can declare victory in this area.”
   
• Most Dependable Model: The Lexus ES is the highest-ranked model in the 2020 study. Its score of 52 PP100 is the best ever recorded in the 31-year history of the study.
   
• First all-electric model receives an award: The Nissan LEAF is the first all-electric model to receive a segment-level award, for compact car.

Highest-Ranked Brands

Genesis ranks highest in overall vehicle dependability among all brands, with a score of 89 PP100. This is the first year Genesis has been included in the study. Lexus ranks second with a score of 100 PP100 (an improvement of 6 PP100 year over year). Buick (103 PP100) ranks third, Porsche (104 PP100) ranks fourth and Toyota (113 PP100) ranks fifth.

Cadillac shows considerable improvement with a reduction of 35 PP100 from 2019. Other above-average brands with strong improvement include Mazda (reduction of 29 PP100), Lincoln (by 28 PP100), Ford (by 20 PP100), Buick (by 15 PP100) and Volkswagen (by 15 PP100).

Toyota Motor Corporation receives six segment awards for the Lexus ES, Lexus GX, Toyota 4Runner, Toyota Avalon, Toyota Sienna and Toyota Tundra. The Toyota brand receives the highest number of segment awards in the study.

General Motors Company receives five segment awards: for the Buick Encore and Buick Regal, and for the Chevrolet Equinox, Chevrolet Silverado HD and Chevrolet Tahoe.

The 2020 U.S. Vehicle Dependability Study is based on responses from 36,555 original owners of 2017 model-year vehicles after three years of ownership. The study was fielded from July through November 2019.

To learn more about the U.S. Vehicle Dependability Study, visit http://www.jdpower.com/resource/us-vehicle-dependability-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info